Japanese carmaker Honda has halted operations at its Swindon plant in the UK due to transport delays, the company said Dec. 9.
The move comes as port infrastructure in the region is facing a demand spike as the UK's departure from the EU customs union looms and container rates surge.
The plant operates on a "just-in-time" basis, according to which parts arrive at the site when needed.
"Honda of the UK Manufacturing (Honda) has confirmed to employees that production will not run on Wednesday 9 December due to transport-related parts delays. The situation is currently being monitored with a view to re-start production as soon as possible," the company said by email.
The Jan. 1 deadline, when the UK finally leaves the EU customs union, is causing high demand for containers and causing strain on UK port infrastructure as the industry prepares for uncertainty, according to shipping sources.
Container freight rates from North Asia to the UK have surged in the fourth quarter, with UK-based importers seeking to fill warehouse space ahead of time.
S&P Global Platts has assessed its Container Rate 11 for North Asia-UK at $5,600/forty foot-equivalent units through December, leaping from $3,000/FEU on Nov. 30 and rising steadily from $1,475/FEU on Aug. 14.
This increase has also come alongside significant increases in spot freight demand for medical equipment resulting from the coronavirus pandemic, a key driver in the market and one that has supported demand throughout the year.
The seasonal aspect of Christmas demand is also adding to the strain on port infrastructure.
Any transport of goods to the UK will require a customs declaration from Jan. 1, with the customs document to be pre-notified at the ferry or short sea terminal.
German international shipping line Hapag-Lloyd issued a customer notice Dec. 8 warning that security filing requirements in a short sea environment will come into effect when the transition period expires Dec. 31, at which time the UK will be treated as a third country for security filing purposes.
